BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 6 X4
                                                                  Page  1

           (Without Reference to File)
           
          CONCURRENCE IN SENATE AMENDMENTS
          AB 6 X4 (Evans)
          As Amended  July 23, 2009
          2/3 vote.  Urgency
           
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          |ASSEMBLY:  |     |(July 9, 2009)  |SENATE: |     |(July 23,      |
          |           |     |                |        |     |2009)          |
           ----------------------------------------------------------------- 
                    (vote not relevant)           (vote not available)
           
           Original Committee Reference:     RLS.  

           SUMMARY:   Contains statutory changes to the Medi-Cal program,  
          within the Department of Health Care Services (DHCS), in order  
          to achieve long-term savings and efficiencies and to implement  
          the 2009 Budget Act.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Health Care Coordination, Improvement, and Long-Term Cost  
            Containment Waiver or Demonstration Project.

            Waiver

             a)   Require the Department of Health Care Services (DHCS) to  
               submit a Medi-Cal Waiver or Demonstration Project to the  
               federal government in order to achieve the following:  i)  
               strengthen California's health care safety net, including  
               disproportionate share hospitals; ii) reduce the number of  
               uninsured Californians; iii) increase federal financial  
               participation; iv) improve health care quality and  
               outcomes; and, v) promote home and community based care.  

             b)   Require the waiver to include Medi-Cal restructuring  
               proposals in order for the program to better serve the most  
               vulnerable beneficiaries, including seniors, people with  
               disabilities, children with significant medical needs, and  
               people with behavioral health conditions.  The goals of  
               restructuring care for these populations include: increase  
               access to better coordinated and integrated care for these  
               populations, improve health outcomes, and slow long-term  








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               growth of the Medi-Cal program.  Restructuring will also  
               seek to improve coordination between Medicare and Medi-Cal,  
               improve integration of physical and behavioral health care,  
               and use medical homes and specialty centers for children  
               with significant medical needs.

             c)   Require DHCS to submit the waiver to the federal Centers  
               for Medicare and Medicaid Services by a date that allows  
               sufficient time for the waiver to be approved by no later  
               than the later of either September 1, 2010, or the  
               conclusion of the current Medi-Cal Hospital (1115) waiver.

             d)   Authorize this waiver to seek authority to enroll  
               beneficiaries into specified organized delivery systems,  
               such as managed care, enhanced primary care case  
               management, or a medical home model.

             e)   Require the waiver to include processes, and criteria,  
               by which DHCS will evaluate and grant exemptions, on an  
               individual basis, from any mandatory enrollment of  
               beneficiaries into managed care.

             f)   Authorize DHCS to implement the wavier by way of  
               all-county welfare director letters, and not issue  
               regulations.  Requires DHCS to notify and consult with  
               stakeholders prior to issuing such letters.

            Stakeholder process
            
             a)   Require DHCS to convene and consult with a stakeholder  
               advisory group in developing the waiver and the  
               implementation plan.  Requires the stakeholder group to  
               remain in place to advise on the continued operation of the  
               waiver; and,

             b)   Require the stakeholder group to include, but not be  
               limited to: persons with disabilities, seniors, legal  
               services agencies, specialty care providers, physicians,  
               hospitals, county government, and labor.

            Implementation plan

             a)   Require DHCS to develop an implementation plan in  
               consultation with a stakeholder advisory committee; and,









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             b)   Require the plan to address the multiple and complex  
               needs of vulnerable populations, and the specific  
               strategies to be used to ensure the provision of quality,  
               accessible health care services under the waiver.  The plan  
               shall include performance standards including: plan  
               readiness, accessible services, care coordination,  
               processes for beneficiary grievances and participation,  
               cultural and linguistic appropriateness, and others.

            Notifications to, and Appropriation by, the Legislature
            
             a)   Require DHCS to regularly consult with the Legislature  
               on the development of the waiver;

             b)   Subject to federal approval of the waiver, authorizes  
               DHCS to enroll beneficiaries in organized delivery systems  
               but only after funds for this purpose have been  
               appropriated by the Legislature;

             c)   Require DHCS to submit an implementation plan to  
               legislative policy and fiscal committees, prior to  
               implementation of this waiver, and at least 60 days prior  
               to an appropriation by the Legislature for this purpose;  
               and,

             d)   Authorize DHCS to utilize state plan amendments to  
               accomplish the purposes described here, and requires the  
               director of DHCS to notify the Joint Legislative Budget  
               Committee of such actions.

          1)Federal Claiming.

             a)   Establish the Legislature's intent that DHCS maximize  
               receipt of federal funds for the Medi-Cal program through  
               its existing demonstration project; and,

             b)   Authorize DHCS to maximize federal claiming by claiming  
               federal reimbursement for: i) expenditures in programs  
               funded by realignment funds including, but not limited to,  
               the County Medical Services Program; ii) expenditures in  
               programs funded by the County Mental Health Services Act;  
               iii) other public expenditures; and, iv) state-only funded  
               programs.

          3)Fiscal emergency.  Address the fiscal emergency declared by  








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            the Governor by proclamation on July 1, 2009.

          4)Urgency Clause:  Declare this bill take effect immediately as  
            an urgency statute.

           AS PASSED BY THE ASSEMBLY  , this bill was a vehicle for the  
          budget trailer bill.


           Analysis Prepared by  :     Andrea Margolis / BUDGET / (916)  
          319-2099


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